Question: Please help me with this problem. Suppose the spot direct quotes for the pound sterling and euro are $1.3981-89 and $.1230-33, respectively. What is the

Please help me with this problem.

Suppose the spot direct quotes for the pound sterling and euro are $1.3981-89 and $.1230-33, respectively. What is the direct quote for the pound in Paris?

I only got this far:

Ask rate = 1.3981 *(1/.1230) = 11.3667

Bid rate = 1.3989*(1/.1233) = 11.3455

Answer is 11.3455-67, but this is not the answer. I am told the answer is 1.1339-73

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!